Automark

After coming up with a limited edition Boondock for the D-Max, it looks like Isuzu Philippines Corporation is ready to give the very same treatment to its mu-X. Launching at the end of this month is the first-ever mu-X Boondock.

Not much is officially known about the mu-X Boondock except for this single blurry teaser photo which is part of Isuzu’s event invitation flyer for their “Grand mu-X Family Event” at the Filinvest Tent in Alabang on September 28.

Based on the photo though, the mu-X Boondock will be getting decked out in all sorts of off-road centric gear. It starts with new bumper extensions and fender flares to better fit the beefier wheels and tires package, likely echoing the D-Max Boondock’s 265/70 R 17 All-Terrain Tires. This is complemented by new roof cross bars as well as Boondock decals. It’s a safe assumption too that the mu-X Boondock will also gain a raised ride height, like the D-Max Boondock, thanks to new monotube nitrogen-charged performance shock absorbers. It must be remembered that the D-Max version has a rock-crawling capable 247 millimeters of ground clearance.

About what will power the mu-X Boondock, again Isuzu is keeping this info close to its chest. But again, the safest assumption would be that the mu-X Boondock will be based off the fast-selling 3.0 LS-A 4×2 variant, although here’s hoping that Isuzu would learn from the shortcomings of the D-Max Boondock and sell the mu-X Boondock as a flagship 4×4 instead. Regardless, all eyes will be on Isuzu this September 28.

Courtesy: CarGuide.ph

The 17th China International Motorcycle Trade Exhibition (hereafter referred to as CIMAMotor 2019), the largest motorcycle exhibition in Asia, will be held on September 20-23, 2019 in Chongqing, China.

CIMA Motor has been held annually since 2002. Says CIMA Director Wei Wang, “It has become the world’s largest event focused on commuter motorcycles, and one of the most significant in the motorcycle industry worldwide.”

CIMAMotor, as one of the most important platforms for new product launch in the industry, will spare no efforts to strengthen its position not only as a platform for brand displaying, product trade, technology transfer and information releasing, but also a platform for innovative products representing the future trends of energy saving and environmental protection.

CIMAMotor Key Facts:

• 386 exhibitors in attendance
• 362 domestic companies, representing 90% of the production capacity of the Chinese motorcycle industry
• 24 foreign companies, including Honda, Harley-Davidson, Suzuki, Peugeot, Piaggio, Kawasaki, Benelli and PEM
• Approximately 1,000 vehicles on display
• Over 100 new models were launched at the event
• CIMAMotor 2010 attracted more than 70,120 visitors; including 21,736 from the motorcycle trades
• CIMAMotor 2011 also featured a wide scope of discussion panels, symposiums and riding activities. These included:
• Events organized and sponsored by Harley-Davidson, Honda, Continental Automotive and IDIADA Automotive Technology S.A.
• The 2010 Chongqing International Motorcycle Riding Activity program attracted the participation of 17 leading motorcycle clubs, including HOG (Harley Owners Group) China; BMW Motorrad Club China, among others
• Domestic and international media participation: nearly 300 accredited media professionals on-site (including Ultimate MotorCycling)
• Show news and information distributed globally to 1000 media outlets

It also offers the opportunity to meet exhibitors identified through the event’s website face-to-face; as well as support throughout the importing process. The trade shows features extensive new motorcycle products and cutting-edge technologies to visitors, and depending on word class hardware condition of the venue, CIMAMotor also set up professional experience space for crossing-country, training skills, and testing drive. In order to add visual interest and participation to visitors and making experiential motorcycle exhibition, CIMAMotor is going to open up motorcycle experiential and interactive zone, motorcycle stunt wards, second-hand motorcycle trading zone.

At present, international luxury motorcycle manufacturers have entered the main markets in China and domestic brands are on the rise. Having been successfully organizing motorcycle riding and other cultural activities for several years. To show the vitality of China motorcyclists, CIMAMotor sinvite foreign motorcycle tour operators from famous motorcycle touring destinations to join in the exhibition. They will meet with more than 300 motorcycle clubs and provide numerous tour choices for nearly 20,000 motorcycle enthusiasts at CIMAMotor.

An entire agenda was set in order to guide the members present as to what events were to take place at what time. For example, few of the several topics discussed is as follows:

• Motorcycle Policy and Guidance Analysis
• Interpretation and Development Exploration of Motorcycle “Oil to Electric” Trend
• Development of Electric Motorcycle Under the New National Standard of Electric Bicycle
• Development Trend and Overseas Investment Situation of Electric Motorcycle

Mr. Wang adds: “The dynamics of the market position, and the rapid rise of the Chinese motorcycle industry are showcased at CIMAMotor. This show is China’s number one domestic and international platform. Its unmatched scope of brands, vehicles, technology, electronics and accessories, as well as business opportunities, make CIMAMotor is the destination of choice for manufacturers and buyers.”

“CIMAMotor is the first stop, and ‘one-stop’ for anyone who wants to discover and engage with motorcycling in China. The past three decades have seen exponential progress in an industry that is poised to raise its game to the next level. The opportunities and challenges are unique, and the potential rewards for business partners, considerable. As CIMAMotor wishes to help turn those challenges and opportunities into success, we welcome international visitors as our honored guests.”

International journalists were also invited to this auspicious event. Automark’s Editor-in-chief Mr.Hanif Memon has also been part of the media team.

CIMAMotor focuses on everything about motorcycles. After being fostered for several years, it has become a reliable promotion platform and strategic partner of the exhibitors.

 The Federal Board of Revenue (FBR) has moved a summary to the federal cabinet for excluding import of storage batteries, auto parts, tyres and tubes from purview of retail price taxation. This mean that tax would be imposed at import price, not at retail price.

The tax machinery also proposed abolishing of 3 percent value addition tax on the goods specified in the Third Schedule of the Sales Tax Act, 1990 as it resulted to imposition of sales tax at rate of 20 percent instead of standard rate of 17 percent.

The content of official summary moved to the cabinet reads that under the Sales Tax Act, 1990, in general, the supplies of goods are charged to sales tax at a specified percentage of sale value i.e. the consideration in money received by the supplier.

But in case of the goods specified in the Third Schedule of the Sales Tax Act, 1990, sales tax is charged on the basis of retail price to be paid by the end consumer as fixed by the manufacturer. “We have proposed changes to remove anomalies,” said a top official of the FBR, and added that after getting approval of the cabinet, the FBR could issue SRO to make this amendment effective.

According to the summary, the objective is to ensure payment of sales tax onvalue addition carried out at subsequent stages of supply chain at the manufacturing stage.

Through the Finance Act, 2019, the relevant provisions in sections 2 and 3 of the Sales Tax Act were amended to include imported goods in purview of such retail price taxation. The FBR official cited example that if certain product was imported and its retail price stood at Rs100, then the 17 percent sales tax were charged but actually its used to be charged at 20 percent at retail price which did not have any rationale. The auto manufacturers asked the government and FBR to remove anomaly to this effect, said the FBR official.

The imported goods as are not raw materials or intermediary goods and are not subjected to Customs duty at a rate below 16 percent are also subjected to value addition tax at 3 percent under the Twelfth Schedule to the Sales Tax Act, 1990, which is payable in addition to sales tax at standard rate. Since, the objective of both retail price taxation and 3 percent value addition tax is to recover sales tax at import stage that otherwise would have been paid at subsequent stages of supply, the simultaneous application of both provisions creates hardship for the traders/businesses.

Accordingly, it is deemed appropriate that application of 3 percent value addition tax on items in the Third Schedule to the Act may be withdrawn.

Moreover, storage batteries, auto parts and tyres and tubes are also included in the Third Schedule for retail price taxation. However, the supplies of the same as made to the automotive manufacturers or assemblers have been excluded from purview of Third Schedule. No such exclusion is available to these goods as imported by automotive manufacturers or assemblers.

Since such imported goods are also meant for use in vehicles to be manufactured and not for sale to general public, the application of retail price taxation, thereon, is not justified.

In view of the legal position, it is proposed that, (i) S. No. 43 (storage batteries), 44 (tyres and tubes) and 49 (auto parts) of the Third Schedule may be amended to exclude these goods from purview of retail price taxation if imported by automotive manufacturers or assemblers; and ii) the Twelfth Schedule to the Sales Tax Act, 1990, may be amended to provide that value addition tax shall not be charged on the goods specified in the Third Schedule.

Both the amendments can be made by the federal government in exercise of its powers under proviso to clause (a) of sub-section (2) of section 3, and the proviso to sub-section (2) of section 7A of the Sales Tax Act, 1990, respectively. The draft notification duly vetted by the Law Division and approved by the federal cabinet is solicited to the proposal, the FBR said.

Courtesy: The News

The electric vehicle policy that was proposed by the Ministry of Climate to the Cabinet Division has been rejected while the cabinet division has formed a 12 member council that consists of members from both the Ministry of Climate Change and Ministry of Industries and Production.

When Prime Mister was charring the first meeting of the Committee on Climate Change, he was presented a comprehensive and detailed briefing on researches made on environment-friendly impacts and economic benefits of electric cars. After that, the Prime Minister gave directions to form a policy and mechanism for adopting electric-cars within 15 days.

Following the events, during a news conference, four months ago advisor to the Prime Minister on Climate Change Malik Amin Aslam said that 30 percent of the vehicle system in the country will be converted to electric cars by the year 2030. He further added that the change would help reduce oil imports and also make the environment better. 

After that during a news conference, Advisor to Prime Minister Malik Amin Aslam claimed that the ministry of Climate Change is ready to present Electric Vehicle Policy in the next cabinet meeting. He mentioned that an electric vehicle policy has been formulated which is set to give a new direction to the transport sector. He said the policy will be presented before the next cabinet meeting for approval.

He added that a special economic zone will be established where electric rickshaws, cars, and buses will be manufactured. This will also create immense job opportunities for youth.

Well-placed sources told print media that after the announcement of Malik Amin Aslam’s decision regarding approval of Electric Vehicle Policy, Ministry of Industries and Production wrote a letter to the Ministry of Climate Change and said the preparation of electric vehicles is not the jurisdiction of Climate Change ministry.

Finally to end the row the Cabinet division stepped to end the row between the ministries over formulating electric vehicle policy.

The Cabinet Division pointed out that under schedule – 11 to the Rules of Business, the federal government functions; ‘National Industrial Planning and Coordination’ and ‘Industrial Policy’ are allocated to the Ministry of Industries and Production. The allocated business of the Ministry Of Climate Change does not relate to the formulation of an industry-related policy.

With consultation from the cabinet, it was then decided on 21st August 2019 that even though the Climate Change Ministry doesn’t have the function to develop any industry-related policy and it strictly falls under the ‘Industry and Production’ division. However, it was said that in this case, Climate Change ministry has advancement in formulating an E-Vehicle Policy hence the industrial ministry should consult the Climate Change ministry and also with their advice ensure that it meets the necessary Industrial Environmental Standards.

On 5th September a committee constituting of Additional secretary-II of Industries and Production was appointed the chairman other members include Joint Secretary of Industries and Production, Representative of commerce, Representative from Climate Change, Representative of Federal Board Revenue, Representative from the board of investment, Chief Executive officer of Engineering development, Engr. Asim Ayaz from Engineering board revenue, Assistant  Chief of Industries and Production and Shafqat Abbas of Industries and Production. Further, it was said that the secretariat of Electrical Vehicle Policy formation would be EBD.

Following the next series of events the advisor to PM on commerce issues, Abdul Razzaq Dawood, held a meeting with advisor of PM on Climate Change Malik Amin in which it was decided that the Ministry of Industries and Production will formulate a comprehensive E-vehicle policy that addresses environmental issues and also promotes healthy competition in the auto-sector along with viable options for consumers at each price point.

Dawood greatly emphasized the need to control emissions for a healthy environment. He said that the forthcoming policy will be implemented under the broader auspices of the Auto Development Policy (ADP) 2016-21 after consultation with concerned stakeholders. The main agenda of the policy would be to introduce electric vehicles without causing damage to the current local auto-sector and the country’s industrial base. 

Aslam, the advisor of Climate change, held a meeting with Indus Motor Company CEO, Ali AsgharJamali and said that the auto policy 2016-21 does not meet the requirements of electric vehicles and therefore a new auto policy would be introduced. The representative of local vehicle manufacturers also met Advisor to PM on Climate Change and convinced him that their business will be affected due to electric vehicles.

They said the Ministry of Climate Change since then has surrendered before the Ministry of Industries and Production and wish not to continue working on Electric Vehicle Policy by the Ministry of Industries and Production.

Talking to press, spokesperson of Ministry of Climate Change, Muhammad Saleem confirmed that the ministry did not present Electric Vehicle Policy before cabinet due to interference of the Ministry of Industries and Production.

He said there is a need to shift on electric vehicles and the ministry of Climate Change wanted to import numbers of electric vehicles in Pakistan initially. He said there is also a need to bring revolution in the transport sector of the country.

But with the current conditions of the economy and the fall in the auto sector, Pakistan isn’t ready for the change as electric cars are more costly. However, if the policy is announced it will be a huge developmental step towards the future.

by Hawwa Fazal / Hanif Memon

The market was abuzz with rumors that the Suzuki Alto car prices would again be increased. After the last price increase, their statement said “The above prices are subject to change without notice and prices at the time of delivery shall apply. Any government tax applicable will be charged to the customer.”

According to industry sources, Suzuki Alto might be going for another price increase that would be somewhere around 25k to 40k, however, the news is not confirmed yet that on which variant they will increase the price. This would be their third price revision since the car was launched back June 2019.

The Auto industry is going through a hard time especially with the depreciation of the rupee value in the market. However the dollar has gong slightly down by 3-4%, so it was expected that the automakers would revise prices to go downward. At the moment it does not seem likely that it would be happening anytime soon.

When the car was launched the introductory price of the Pak Suzuki Alto VX was Rs.981,000, Alto VXR was for 1,083,000 and Alto VXRL AGS was for 1,277,000. However, as tax became a burning issue at that time and the rupee devalued many companies raised their prices. Among them, there was Suzuki Alto 660cc and it was confirmed on 30 July 2019 that the prices were revised which were implemented from 1^st August 2019 and were as follows:

Note that while the above-mentioned prices are inclusive of Ex-factory price and freight charges incurred on the vehicle to reach dealership premises, they are exclusive of Advance income tax.

Now, this was quite a shock to the buyers but it was expected after the cost of high taxes and duties imposed by the government.

But another price increase at this time suggests that Kia Picanto which was introduced last week to compete against Suzuki has failed to cause any stress lines on the Suzuki Automakers and they’re least bothered with the competition offering a better car but with a higher price.

Although the stress goes on to the consumers who are struggling to find budget cars especially with imported cars out of the option and locally produced car makers hiking their prices despite a decrease in the US dollar.

Is the Auto Industry really troubled and losing business? 

by Hawwa Fazal

Hongqi brought two concept cars to Germany; the S9 supercar (see earlier post), and this E115 electric SUV.

The E115 previews Hongqi’s new flagship pure electric SUV, which will be launched on the Chinese car market next year. It will be an ultra luxurious four-wheel drive vehicle with L4 autonomous driving capabilities and air suspension. Hongqi claims a 600 kilometer range and a 0-100 in 4 seconds.

The E115 is the first Hongqi fully designed by former Rolls-Royce design director Giles Taylor, who is working for Hongqi now. There are defenitely some Rolls-Royce design clues on the E115, especially from up front, but overall is seems a great looking car.

Hongqi calls their new design direction ‘Smart Blade’, which sounds very cool. May there be more.

Geely has been on an acquisition spree and already owns a stake in Daimler AG and owns Volvo Cars. The company has now helmed a round of investment which raised 50 million euros (USD 55 million) to help Volocopter launch its VoloCity air taxi on a commercial basis within the next three years, according to a Bloomberg News report. Geely and Volocopter will form a new joint venture firm that would eventually bring flying cars to the Chinese market.

Volocopter is also involved in talks to raise even more funds by the end of 2019. Daimler has owned a stake in the company from 2017.

Geely’s investment makes sense in light of the fact that China is trying to get more motorists to swtich to the use of more environment friendly vehicles in a bid to reduce the massive levels of air pollution and the country’s dependence on oil supply from overseas.

Li has been diversifying Geely by venturing into different fields like microchips and low-orbit satellites. Back in 2017, Geely had announced that it was acquiring American firm, Terrafugia which had ambitious plans to commercialize a flying car by 2019. Geely had also finalized an agreement with China Aerospace Science and Industry Corp., which is owned by the Chinese government to build “supersonic trains” using homegrown technology.

“Geely is transitioning from being an automotive manufacturer to a mobility technology group,” Li said.

Many other companies are working on their very own versions of “flying cars” with the most mentionable being Toyota, Uber, Airbus SE and Boeing. Japanese company, NEC Corp. just last month made a flying car that managed to hover over the ground for about one month.

Mr. Mansoor Rizvi, a member of our editorial board travelled to Sukkur to take this very important interview from Mr. Hassan Chachar (Senior Vice President Sindh Chamber of Agriculture) to apprise our readers about the state of Agriculture in the province of Sindh. Automark is very thankful to Mr. Chachar for giving his precious time for an interview. He has shed light on many important techniques in agriculture that are not happening thus needing immediate attention by the Sindh Government to improve agriculture in the province. We trust that the honorable Chief Minister who is a very qualified person, a position holder in civil engineering from NED, and a graduate of Stanford University will immediately take notice of the concerns discussed in the interview.

Q1. What are the basic issues that we are facing in agriculture in Sindh?
A. There are many issues but the main oneis the non-fixation of commodity prices(agricultural products) by the Government. This has not been done for the last many years. As a result, our farmers face a lot of difficulty in marketing their commodities (Wheat, rice and sugarcane) in the absence of support prices. They are then left at the mercy of marketers and subsequently become a subject of massive exploitation by these profiteers. While the government does not fix the prices, so they do not purchase wheat from the farmers. This situation has further been exploited by the agents. Some ten years back Govt use to fix prices of various commodities.This year sugarcane prices were fixed at 182Rs/maund but sugarcane mill owners did not honor it. The millowners even did not make the payments to the growers of the prices they agreed to pay. They finally paid whatever they liked to with full of harassment and blackmailing to growers.Also, the rice growers met with the same fate and badly exploited by the agents (shopkeepers).
The situation of farmers is very dismal,they are suffering losses of millions of Rupees due to no support prices, exploitation by the hands of agents, high input cost, shortage of water, adulterated pesticides and high cost of fertilizer. Sindh is also suffering due to water scarcity because its justifiableshare of water is not given due to poor water management by the Government. The shortage of water is turning agricultural lands of Sindh particularly at tail end barren. The government machinery of Sindh is no good to check the sale of adulterated pesticides and seeds causing tremendous loss of yield and brings huge financial losses to the farmers. Fertilizer prices are out of reach of farmers because fertilizers companies increase prices without any justification. The retailers took its advantage and add further into the price. This makes farmers life difficult because they are compelled to pay high prices. Most of the time they are not able to apply prescribed amount of fertilizerwhich compromise yield. In a nut shell government do not support small growers (around 93% farmers own up to 12.5 acres of land) in terms of loaning. No subsidy is given to support agricultural mechanization (Tractors, tube well, Harvesters and other related agricultural equipment.

Q2. How these issues could be resolved?
A. Sindh Government does not have any concrete Agricultural policy. There should be a proper agricultural policy document to be drafted involving all the stake holders to achieve a unified approach as what steps to be taken to improve, strengthen and reinforce agriculture in Sindh. Unfortunately, the controlling authoritiesto check adulterated pesticides, seeds and other vital agricultural inputs are either non-functional or not very upright to perform their task honestly with due diligence. Unfortunately, those who matter care less about national development and its prosperity rather personal gains and benefits. In fact, easy loaning facility should be provided to small growers (responsibility of Sindh/Federal Government) to encourage them to grow more. Production loans are given to some extent, but development loans are totally non-existent on the pretext that loans will be mis-utilized, and recovery would be difficult or rather impossible from farmers (small and moderate farmers) so theyare not given any loans. This tendency is causing huge loss to agriculture and nation. We have around 90% small farmers owning less than 12.5 acres. However, if we analyze the bad debts situation it’s all coming from politicians, big businesses and big landlords. Some 15 years ago small growers were given loans which has resulted in improvement in Agriculture. Since our Governments started giving loans tobig people instead of small growers the bad debts increased manifold and banks were left with no money to disburse to small growers. There is a tremendous potential of fish farming, poultry farming and livestock that could be carried out by small farmers provided easy loans are offered to them. Various foreign companies have offered 30% Equity-70% foreign investment proposal to materialize these projects. The reason it did not work out because small farmers do not have money to even pay their 30% share.

Q3. Why particularly Sindh province is behind in Agriculture comparing to neighboring province? What is your professional advice to Sindh Government?
A. The answer is very simple, Sindh Government has never tried to understand the issues of small and medium growers, you can say lack of total awareness about the challenges being faced by the farmers. Sindh growers were never provided any technical assistance to learn new farming techniques. They have no laser levelling while with a little exaggeration I can say Punjab is now fully laser levelled. The agricultural extension department is not performing their duties effectively as a result farmers knowledge on agriculture like right sowing/harvesting time, need of fertilizer (right quantity), selection of proper seed and quantity is not known to them. No check on the sale of adulterated pesticides, seeds and fertilizers. You must have heard that many a times our rice crops got destroyed completely because of the adulterated pesticide application. You can compare the yield of different crops in Sindh with Punjab. The difference is almost double.

Q4. What are the main reasons of water crises in Sindh? What could be the possible resolution?
A. Small Dams should be constructed in Sindh to store water. This will help in mitigating the water shortage in Sindh. Another major area of concern is due to the sheer violation of inter-provincial agreement by the Indus river system authority. According to the agreement Thal and Chashma link canals are flood canals, water will only be released to Punjab from these canals when (source of water is Tarbela Dam ) all barrages of Sindh got full supply or there is an emergency flood situation(water exceeds capacity of canals). On the contrary, Punjab keeps these canals running which helps irrigating their barren areas while Sindhnot only get deprived of their legitimate share but gets no water at the tail-end. It was agreed at the time of the construction of these canals that water to these canals could be released only with the consent of Sindh. But during the rule of Gen Zia, Punjab Governor Gen Ghulam Jilani refused to accept the agreement and ordered water release. During the tenure of previous Government when the KP government was under Imran Khan did not support the Sindh stand because Mr. Khan wanted to construct the Kalabagh Dam. Sindh Irrigation department, unfortunately, miserably failed in pursuing this matter efficiently and effectively with the Government. This is due to lack of national approach in them. Their focus is to oblige big landlords to gain personal favors instead of raising voice for poor peasants. Concisely speaking all minors in Sindh (tail-end) are suffering with acute water shortage.

Q5. What is your point of view about the construction of Kalabagh Dam?
A.There are many for and against points about Kalabagh Dam. Sindh, Balochistan, and Khyber Pakhtunkwa are generally not in favor of Kalabagh Dam. This could be better described by quoting the common man saying that “Construction of Kalabagh Dam will turn Sindh and Baluchistan into desert while KPK will be submerged into water.
In my opinion the major road block is the trust deficit. In view of my above description where trust is being breached by running the flood canals to deprive Sindh of its legitimate share of water, who will guarantee that this will not be repeated after the construction of Kalabagh dam. Geographically the location of Kalabagh dam is more favorableto conveniently construct parallel canals from there. The opening of the canals from Kalabagh dam will be extremely brutal for Sindh and literally this will turn this province into desert. Other than this there are many socio-economic and political reasons that are not favorable for Sind. The Sindhi wetlands such as the Keenjhar and Haleji Lakes will dry up. Kalabagh Dam has the potential to make the agrarian Indus Basin barren and unproductive by preventing flooding and situation in riverine areas. It will also damage to the Indus Delta and animal habitat.
However, we are greatly in favor of the construction of Bhasha Dam because the terrain in the surrounding is not very conducive to take out canals to steal our water.

Q6. It is said that Feudal in Sindh and Sardars in Baluchistan are the real reason of the poor state of these two provinces. Is this true? What is resolution in your opinion.
A. No one can deny it, but we must understand that it’s due to their insecurity coming from the feeling that by developing these areas their hegemony will be jeopardized. What could be done to eliminate this fear from their head? The only answer is education. At present the state of education in Sindh is very dismal because besides having schools, colleges and universities in the province the standard of education is so poor that it became difficult to differentiate between an educated and non-educated person. This has happened in the past 20 years due to greater involvement of political parties in the educational institutes.

Interviewed by: Mansoor Rizvi